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Unsealed filings show Microsoft, OpenAI executives privately called AI training 'theft'

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GoKawiil Brief

Newly unredacted court documents in The New York Times' copyright suit against OpenAI and Microsoft reveal that a senior Microsoft executive privately labeled the companies' AI training practices as theft, while OpenAI leaders reportedly acknowledged their models posed an existential threat to publishers. The filings also allege the companies bypassed paywalls, scraped content en masse, and removed copyright notices to build training datasets.

Why It Matters

GoKawiil's interpretation of the reporting above, not reported fact.

These internal admissions could undercut the AI industry's 'fair use' defense, which depends partly on showing that AI training doesn't harm the market for original works—yet Microsoft's own data reportedly shows Copilot slashed click-through traffic to the Times by up to 93%. With courts and the Trump administration largely siding with AI firms so far, such evidence could reshape how judges weigh harm to publishers in ongoing and future copyright litigation.

Key Takeaways

Source: techcrunch.com — Rebecca Bellan, 2026-09-17

Published there as: “Microsoft exec called AI scraping ‘the largest theft of labor in human history,’ new unredacted filings reveal”

Read the original report → The summary and analysis above are GoKawiil's own, written from reporting by the source above. Facts and quotes belong to the original publisher.